https://www.taxtmi.com/caselaws?id=290229 The Calcutta HC held that where goods are manufactured abroad but sold in British India, the realised profit is taxable in British India and cannot be split by attributing part of it to foreign manufacture. Section 4 taxed profits accruing, arising or received in British India, and the fact that work or expenditure was incurred abroad did not exempt any portion of the sale profit. Section 10 allowed deduction only of actual expenditure and losses incurred in earning profits, not a notional apportionment of realised profits. Section 42 likewise supported taxation of profits connected with business in British India. The assessee's claim to deduct a proportion of profits was rejected and the reference was answered for the Revenue. en-us Fri, 05 Feb 1932 00:00:00 +0530 Tue, 15 Sep 2020 11:39:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290229 The Calcutta HC held that where goods are manufactured abroad but sold in British India, the realised profit is taxable in British India and cannot be split by attributing part of it to foreign manufacture. Section 4 taxed profits accruing, arising or received in British India, and the fact that work or expenditure was incurred abroad did not exempt any portion of the sale profit. Section 10 allowed deduction only of actual expenditure and losses incurred in earning profits, not a notional apportionment of realised profits. Section 42 likewise supported taxation of profits connected with business in British India. The assessee's claim to deduct a proportion of profits was rejected and the reference was answered for the Revenue. Case-Laws Income Tax Fri, 05 Feb 1932 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290229